Size and scope of the underground economy in Germany

Michael Pickhardt · Jordi Sardà Pons

53 citations0/0 files storedApplied Economics

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Taxation and Compliance Studies Economic and Fiscal Studies Crime, Illicit Activities, and Governance

Abstract

The objective of this paper is to improve estimations of the size and scope of the underground economy by introducing a new approach that combines the advantages of the two most commonly used approaches, i.e. currency demand and multiple indicators, multiple causes (MIMIC). The new approach is applied to Germany. Among other things, it is shown that the approach yields improved estimation results. Some policy perspectives are discussed in the concluding section.

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References

2000Shadow Economies: Size, Causes, and Consequences 2007Shadow Economies and Corruption All Over the World: Revised Estimates for 120 Countries 1999Measuring the Hidden Economy: Implications for Econometric Modelling 2004Shadow Economies Around the World: What Do We Know?2007Corruption around the world: Evidence from a structural model 2000Modelling the hidden economy and the tax-gap in New Zealand 1997Causality between the measured and underground economies in New Zealand 2002The Canadian underground and measured economies: Granger causality results

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2016Unemployment and the shadow economy

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